Recently, we published “What China can learn from Japan on cleaning up the environment,� an essay by Bill Emmott, former editor of the Economist. Emmott argues that just as Japan learned to balance its drive for economic development with the need for more environmentally friendly policies, so too could China recognize the threat that pollution poses to its success and adopt greener policies. Now, three observers of China’s industrial and environmental policies reflect on Emmott’s essay. First, economist and author Richard Katz notes that although some progress has been made, the country has difficulty keeping pace with industrial growth. Andrew Grant, a McKinsey director in Shanghai, suggests that China, with its vast distances and large coal deposits, resembles the United States more than it does Japan—suggesting that careful planning is more important than ever. Finally, Minxin Pei, a senior associate at the Carnegie Endowment for International Peace in Washington, DC, believes Emmott may be overly optimistic about China’s potential to go green, arguing that political barriers are greater than economic ones. Read the original essay and responses, then let us know what you think. Read more on the McKinsey Quarterly >

Topics: Asia-Pacific China Energy, Resources, Materials

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Compared with a month earlier, twice as many executives now expect their companies’ profit to fall in 2009, and more than half expect deflation in their countries in the first quarter. Small, private companies are still doing better than others. Read more on the McKinsey Quarterly >

Topics: Economic Studies Surveys

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On Monday, The McKinsey Quarterly published an essay by former Intel CEO Andy Grove proposing a program to retrofit millions of US cars to go electric. We asked you to give us your reactions—and many of you did. Some applauded the plan, but many challenged the author on details: where would the electricity come from, could this idea work given the current transmission capabilities, and how would it get support from consumers and politicians? Read the letters and Grove’s response; then tell us what you think. Read more on the McKinsey Quarterly >

Topics: Automotive Energy, Resources, Materials Public Sector

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Which is superior—the public- or private-equity model of ownership? Opinions abound, but very few observers actually have experience in both camps. In interviews, chairmen or CEOs who do have such experience say that the boards of private-equity portfolio companies are significantly more effective than are those of their public counterparts. However, they also say that the boards of public companies are better at governance. Read more on the McKinsey Quarterly >

Topics: Corporate Finance Financial Services Governance

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Yasheng Huang, associate professor at the MIT Sloan School of Management, writes that contrary to the assumptions of many Western economists, China’s success is not based on technocracy but rather on principles of private ownership and financial liberalization. Read more on the McKinsey Quarterly >

Topics: China Public Sector

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